Mr. Miller is part of many industry and governmental working groups regarding the Oil and Natural Gas Oversight and Regulation.
It has become a foregone conclusion that the Environmental Protection Agency (EPA) will be given full authority and mandate to regulate any and all activities surrounding Hydraulic Fracturing, to include an imminent ban on the injection of all toxic chemicals into the ground, imposition of major fines for violations of the Clean Water Act, and designation of De-facto superfund/clean up sites in major drilling areas already seriously contaminated by the Natural Gas and Drilling Producers.
The future of Hydraulic Fracturing "Fracking" in the Continental U.S. is very much at risk given the undeniable facts that the process can't be conducted without the use of toxic chemicals, contamination of water tables, use of known carcinogens known to be harmful to humans and violation of the U.S. Clean Water Act.
NEW YORK, NY--(Marketwire - February 25, 2011) - Newco Energy Acquisition Holdings (NEAH), LLC and Senior Energy Industry Executive Karl W. Miller today announced their support to ban the use of toxic chemicals in hydraulic fracturing to produce oil and natural gas.
Mr. Miller is a major supporter and advocate for the environmentally responsible development and production of Oil and Natural Gas in the U.S.
According to Mr. Miller:
- The Oil and Natural Gas industry has brought a critical self inflicted crisis upon itself by failing to act in an environmentally responsible manner regarding the use of hydraulic fracturing. In one fell sweep, the industry has become the primary target of the Environmental Protection Agency (EPA), State and Federal lawmakers, and most importantly, the general public.
- The injection of toxic chemicals in to Oil and Natural Gas wells, many chemicals which are clearly known to be harmful to the environment, water tables, and human beings represents a catastrophic failure of the Oil and Natural Gas producers in the U.S.
- Given the continued abuse by the natural Oil and Natural Gas and mounting incidents of water table contamination, fires and other drilling related problems in high and low density populated areas, and the pending law that will in essence "kill fracking" by virtue of eliminating the use of toxic chemicals in production wells, leads to the conclusion that the States and Federal Government will in unison and individually start to ban fracking operations across the U.S.
- The first permanent drilling bans will occur in the Eastern U.S. in the Marcellus Shale formation in New York, New Jersey, West Virginia, Maryland and Pennsylvania. This geographic area has already been severely damaged by Natural Gas Fracking and substantial legal actions are pending and many more are forthcoming against production companies.
- State and Municipal pension and retirement funds in the States polluted by Oil and Natural Gas Fracking will require their money managers not to purchase and own any producers which have participated in "Fracking," essentially prohibit the purchase or ownership of these producers in public pension fund allocations.
- The EPA will be given absolute control of the Oil and Gas Producers utilizing hydraulic fracturing and any violations involving injecting toxic chemicals into the ground for drilling purposes will be dealt with in a very harsh and financially severe manner. Every Oil and Natural Gas drilling site which has had toxic chemicals utilized should be treated as an "EPA clean-up site" and will be subject to the full powers of the EPA to institute the equivalent of the "Death Penalty" to producers who violate Federal Environmental Law.
- The environmental liabilities that the Oil and Natural Gas Industry have already created by hydraulic fracturing exceed the financial capability of most Producers to cover and environmental litigation and enforcement by the EPA and State Agencies could technically bankrupt many of the producers.
- The full disclosure of specific toxic chemicals which have been utilized in the past and are currently being utilized by Oil and Natural Gas producers will be made into State and Federal Law and violations of the full disclosure law will bring swift and "going concern threatening" penalties.
(See: Disclosure of Hydraulic Fracturing Fluids: http://wilderness.org/files/State%20chemical%20disclosure%20requirements.pdf)
There does not appear to be any way for the Oil and Natural Gas industry to lobby itself out of this critical problem, which many industry experts consider a death nail to many natural gas producers. Public opinion is overwhelmingly now against "Hydraulic Fracking" and we see the momentum to ban the practice outright in a majority of the U.S. as irreversible.
Disclaimer: The views expressed are those of NEAH and Mr. Miller. Investors should seek the advice of a qualified investment professional prior to making any investment decisions.